Dsti/iccp/cisp(2007)2/final
A converged approach to content
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A converged approach to content
While convergence may contribute to plurality and diversity, as it lowers market entry barriers, it creates new issues and challenges to existing policy. The telecommunication and broadcasting policy traditions may need to adjust in order to cope with the changing markets and to continue to achievie common policy objectives. Scope of regulation Audiovisual content is increasingly distributed via a broad range of digital technologies that transmit to television, computers, as well as mobile and portable devices, blurring boundaries between “video” and “broadcasting services”. The scope of the definition of broadcasting services 102
is relevant considering the detailed regulation which is usually imposed on broadcasters and usually aimed at addressing a number of social and economic interests, such as the need to maintain plurality and cultural diversity, develop national identity, and implement certain standards of decency. Policy makers need to determine whether and to what extent existing broadcast regulations should apply or be adapted to a wider range of content packagers and suppliers, and to what extent existing broadcast regulation may be reduced. In order to address technological evolution, the Council of the European Union and the European Parliament in their work differentiated between television broadcasting (“linear” audiovisual service), where the broadcaster establishes the programme schedule; and “non-linear” content, i.e. on-demand audiovisual services. They also separated “television-like” on-demand services, which refers to content DSTI/ICCP/CISP(2007)2/FINAL
46 comparable to television broadcasting, from other content available on IP-based platforms – such as user created content. 103
104 adopted on 11 December 2007 covers the first two types of services (television broadcasting and “television-like” services), to which the directive’s provisions are applicable, and special provisions are dedicated to on-demand services only. In Canada, the independent regulator, CRTC, exempted from licensing or other requirements of the Broadcasting Act all broadcasting services and mobile television service over the public Internet but not television broadcasts over managed IP-based networks. 105
The EU proposals specifically note that they are not aimed at user created content. However, depending on the definition of “editorial responsibility” and “effective control” 106
adopted by EC countries, the dividing line between regulated and unregulated services may shift. It is important to stress that new technological developments do not imply that existing regulations need to extend their coverage over other platforms of services, 107
as, if they were implemented without appropriate adjustments to the nature of these platforms, they could stifle the take up of innovative services. Ensuring effective competition Convergence is helping to intensify competition in broadcast markets by impacting on delivery networks and services. Convergence can help reduce access bottlenecks by allowing services to be delivered on a number of different platforms, and by creating market entry opportunities by new providers stimulates innovative services. The entry into the audio-visual market by new players, such as telecommunication network operators and larger Internet-based companies, can reduce market power in broadcasting. However, access to content is important for new entrants so that if larger companies or joint ventures (horizontal integration) control media rights for the most interesting premium content, it may be difficult for new entrants to provide competitive offers. 108
which is made available. With the shift to digital television more spectrum will be freed up and will be available for other services. The allocation of the so–called “digital dividend” can therefore have an impact on the development of new services in the content market. 109
Currently it seems that the request for spectrum will be driven by mobile television (see Box 6), high-definition television and wireless services, such as WiMax. As it is currently difficult to foresee how a converged audio-visual sector will evolve in the next years, most policy makers in the OECD are taking a “light touch” regulatory approach. This approach may also need to be complemented by instruments addressing specific bottlenecks and helping the competition process, for example to ensure consumers are properly informed, reduce switching costs for users, and remove possible barriers to entry for competitors (including spectrum). 110
competition, questions on whether there is a need for increased harmonisation of regulation relating to advertisement, quotas, and the like. In addition, a number of rules exist at the national and at the European Union level that aim at promoting cultural and linguistic diversity of audio-visual contents by setting up limits or rules applicable to the international trade of audio-visual services. These rules are conforming notably to the UNESCO Convention on the protection and promotion of the diversity of cultural expressions adopted in October 2005 and since then ratified by more than 75 Member States, according to which governments are able to protect their national content. Finally, difficulties are posed by the application of different copyright schemes for content at local/regional levels. DSTI/ICCP/CISP(2007)2/FINAL
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At the level of the broadcasting market itself few countries have moved in undertaking significant reforms to try and enhance competition in these markets, while taking into account public interest mandates. These mandates have often been used to slow down market entry and limit competition. Technological and market change provide an opportunity for broadcast regulators to undertake fundamental reviews of regulatory frameworks.
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